Profits are always equal to zero when(Slide: Short-Run Profitability)A.price is equal to the minimum average variable costB.price is equal to the minimum average total costC.price is equal to the minimum marginal cost Introduction Competitive Market Short-Run Market Supply000000000000000Short-Run ProfitabilityOhigh priceПоPHAатениРыбово → фрепP4=MR=MCLong-Run Market Supply100π₁ = (P-ATC) * Q-мс-АТСатсутко-AVCPLРоChanges2 low priceOpenмесмеNext Class0неAVCनगर

Profit is revenue minus total cost. i.e., Profit = Revenue - Total cost --------------------------…

Answered: Profits are always equal to zero when…

Profits are always equal to zero when (Slide: Short-Run Profitability) A. price is equal to the minimum average variable cost B. price is equal to the minimum average total cost

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Profits are always equal to zero when
(Slide: Short-Run Profitability)
A.
price is equal to the minimum average variable cost
B.
price is equal to the minimum average total cost
C.
price is equal to the minimum marginal cost

Introduction Competitive Market Short-Run Market Supply
0000
00000
000
000
Short-Run Profitability
Ohigh price
По
PHA
атени
Рыбово → фреп
P4=MR=MC
Long-Run Market Supply
100
π₁ = (P-ATC) * Q
-мс
-АТС
атсутко
-AVC
PL
Ро
Changes
2 low price
Open
месме
Next Class
0
не
AVC
नगर

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